The U.S. has been key in setting rules for crypto and digital assets worldwide for the last 10 years. Fast growth in areas like Bitcoin, Ethereum, stablecoins, and DeFi has pushed U.S. regulators such as the SEC and CFTC to modernize finance rules for the digital age. These changes have been met with both enthusiasm and annoyance in the crypto world, as regulators try to find the right balance between new ideas, keeping investors safe, keeping finances stable, and protecting national security.
This piece looks at the main changes in U.S. crypto policy, namely what the SEC, CFTC, and other groups are doing. It also checks how these rules affect businesses, investors, and the global market, while thinking about what’s next for crypto in the U.S. Gary Gensler’s SEC is now the main regulator for crypto. Gensler used to teach blockchain at MIT. He keeps saying most cryptos, except Bitcoin, are securities. He uses the Howey Test from 1946, which helps decide if something is an investment deal.
This view has caused the SEC to crack down on big crypto firms. These big cases are about if cryptos should be seen as stocks, commodities, or something totally different. But some say the SEC is hurting new ideas by enforcing rules instead of giving clear advice. Many in crypto want rules made just for blockchain, instead of using old laws. The SEC is calling many tokens securities, but the CFTC says it has say over digital commodities, especially Bitcoin and, more and more, Ethereum. The CFTC’s method isn’t as broad as the SEC’s, but it still matters a lot. The CFTC controls derivatives markets like futures, options, and swaps. It has watched over Bitcoin and Ether futures trading on exchanges like the Chicago Mercantile Exchange (CME).
Lately, the CFTC has gone after crypto companies for things like market manipulation, fraud, or trading derivatives illegally. One example is when it fined BitMEX for not having anti-money laundering steps in place. This was one of the biggest actions in crypto derivatives. That’s because the CFTC has usually seemed more open to new ideas. but, it can’t control the whole crypto world because its job is smaller. This makes the SEC and CFTC overlap, and that can cause issues. Because of this, the rules are a bit all over the place, and companies have a hard time knowing what rules they need to follow for what they’re selling.
Right now, everyone’s talking about how to regulate stablecoins in the U.S. crypto scene. These tokens are pegged to regular currencies such as the dollar.Stablecoins such as Tether (USDT) and USD Coin (USDC) make things easier in crypto, letting traders quickly shuffle funds between exchanges without needing banks.
The Treasury Department and the Federal Reserve have discussed this, noting the need for rules that ensure stablecoin companies are open about their reserves and closely supervised. Congress is considering bipartisan ideas. Passing a stablecoin law would be a big step in bringing digital assets into the mainstream financial system.
